Chapter 5

Question 1

Encumbrance

Answer 1

Any charge, claim, right, burden (otherwise called a cloud on title), and/or interest in real property other than the owners, including but not limited to, any restriction upon the title to real property, affecting and/or limiting any interests or its use.

Question 2

Lein

Answer 2

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation (ex: judgments, taxes, mortgages, deeds of trust, etc.)

Question 3

Voluntary Lien

Answer 3

Any lien placed on a property with the consent of, or as a result of, the voluntary act of the owner.

Question 4

Involuntary Lien

Answer 4

A lien imposed against property without the consent of an owner (ex: taxes, special assessments, federal income tax liens, etc.)

Question 5

Debt

Answer 5

That which is due from one person or another; obligation, liability

Question 6

Promissory Note

Answer 6

Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. the promissory note establishes personal liability for its payment. the evidence of the debt.

Question 7

Security Instrument

Answer 7

A contract whereby a debtor agrees to use the property as security or collateral for the repayment of debt.

Question 8

Hypothecate

Answer 8

To pledge a thing as security without the necessity of giving up possession of it.

Question 9

Mortgage

Answer 9

A contract whereby a mortgagor agrees to use the real property as security for the repayment of debt.

Question 10

Foreclosure

Answer 10

A procedure whereby property pledged for a debt is sold to pay the debt in the event of default in payment or terms.

Question 11

Trustor

Answer 11

One who borrows money from a trust deed lender then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.

Question 12

Trustee

Answer 12

One who holds the property in trust for another to secure the performance of an obligation. Third-party under a deed of trust.

Question 13

Real Property Sales Contract

Answer 13

An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract.

Question 14

Vendor

Answer 14

A seller

Question 15

Vendee

Answer 15

A purchaser, buyer

Question 16

Deed in Lieu of Foreclosure

Answer 16

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.

Question 17

Mechanics’s Lien

Answer 17

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

Question 18

General Lien

Answer 18

A lien on all the property of a debtor

Question 19

Specific Lien

Answer 19

A lien that attaches to one specific property only.

Question 20

Package Loan

Answer 20

A type of loan used in home financing covering real property, improvement and movable equipment/appliances.

Question 21

Judgment Lien

Answer 21

A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of judgment

Question 22

When is a mechanics lien effective?

Answer 22

When the supplies were ordered or work was done. Whatever comes first. Their lien position is based on this date.

Question 23

Easement

Answer 23

A right, privilege or interest limited to a specific purpose which one party has in the land of another.

a non-possessory right to use the land of another

Question 24

Easement Appurtenance

Answer 24

A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.

Question 25

Easement in Gross

Answer 25

A right of use in the land of another without the requirement that the holder of the right own adjoining land. (Usually used by utility companies)

Question 26

ingress-egress

Answer 26

For entry and Exit of one’s own property.

Question 27

Servient Tenement

Answer 27

Land encumbered by an easement.

Question 28

Dominant Tenement

Answer 28

Land benefiting from an easement appurtenant

Question 29

Easement by Voluntary Grant

Answer 29

An easement obtained by the express written agreement of the landwoner, usually in a deed.

A grantor conveys the right to use the grantor’s land to a grantee for the purpose of ingress and egress

Question 30

Easement by Necessity

Answer 30

It exists when a landowner has no access to roads and is landlocked.

Question 31

Easement by Prescription

Answer 31

An easement obtained by use of the land of another’s property for the legally prescribed length of time.

Question 32

Adverse Possession

Answer 32

A method of acquiring title to real property by conforming to statutory requirements; a form of involuntary alienation of title.

Question 33

What does “Run with the Land” mean?

Answer 33

Easements “Run with the Land” meaning even after the property is sold, the easement (whether benefiting or limiting the property) transfers to the new owner.

Question 34

Easement by Implication

Answer 34

An easement obtained by the implication from the conduct of the parties.

Question 35

Easement by Condemnation

Answer 35

An easement created by the exercise of the government’s right of eminent domain.

Question 36

Encroachments

Answer 36

An unlawful intrusion on to a neighbor’s adjacent property by improvements to real property

Encroachments are essential objects that illegally overhang on to an adjacent property. (a Tree, Fence, Driveway, Roof Overhang)